SEC, et al v. Custable, et al, No. 1:2003cv02182 - Document 327 (N.D. Ill. 2009)
Court Description: MOTION by Plaintiff Securities and Exchange Commission for judgment by consent against Defendants Robert Blagman, Richard Bailey, Pacel Corporation and Marshall Holdings International Ltd. (f/k/a "Gateway Distributors, Ltd.") (Attach ments: # 1 Exhibit 1. Consent of Robert Blagman to Final Judgment, # 2 Exhibit 2. Consent of Richard Bailey to Final Judgment, # 3 Exhibit 3. Consent of Pacel Corporation to Final Judgment, # 4 Exhibit 4. Consent of Marshall Holdings International, Ltd. to Final Judgment, # 5 Certificate of Service)(Levine, Steven)
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SEC, et al v. Custable, et al Doc. 327 Att. 1 Dockets.Justia.com UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION __________________________________________ : UNITED STATES SECURITIES : AND EXCHANGE COMMISSION, : : Plaintiff, : : Civil Action No: 03 C 2182 v. : : FRANK J. CUSTABLE, JR., et al., : Judge Gottschall : Magistrate Judge Valdez Defendants. : __________________________________________: FINAL JUDGMENT AS TO DEFENDANT ROBERT BLAGMAN The Securities and Exchange Commission (“SEC” or “Commission”) having filed a Complaint, First Amended Complaint and Second Amended Complaint (which is the current operative pleading) in this action and defendant Robert Blagman (“Defendant”) having entered a general appearance; consented to the Court=s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Second Amended Complaint (except as to jurisdiction, which Defendant admits); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment: I. [PERMANENT INJUNCTION PROHIBITING VIOLATIONS OF SECTION 5 OF SECURITIES ACT] IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant’s officers, directors, subsidiaries, affiliates, successors, agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption: (a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; (b) Unless a registration statement is in effect as to a security, carrying or causing to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale; or (c) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding of examination under Section 8 of the Securities Act [15 U.S.C. § 77h]. II. [DISGORGMENT, PREJUDGMENT INTEREST, CIVIL PENALTY] IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is ordered to pay disgorgement of $250,000, together with prejudgment interest thereon in the amount of 2 $83,934, and a civil penalty in the amount of $50,000 pursuant to Section 20(d) of the Securities Act. Defendant shall satisfy his monetary obligations under this judgment by paying $50,000 within 10 days of entry of the Final Judgment, and then by making four equal quarterly installments of $83,483.50, plus any post-judgment interest that has accrued to the portion to be paid as of the date of each payment, with the first such quarterly payment due 90 days after the date of entry of the judgment and successive payments due every 90 days thereafter. The rate of post-judgment interest shall be calculated in accordance with 28 U.S.C. § 1961. Each payment shall be made by certified check, bank cashier’s check, or United States postal money order payable to the Securities and Exchange Commission. The payment shall be delivered or mailed to the Office of Financial Management, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 22312, and shall be accompanied by a letter identifying Robert Blagman as a defendant in this action. Each letter accompanying a payment shall set forth the title and civil action number of this action and the name of this Court, and specify that the payment is made pursuant to this Final Judgment. Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961. Defendant shall simultaneously transmit photocopies of such cover letter payment and letter to the SEC=s counsel of record in this action. Defendant relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Defendant. The Commission shall remit the funds paid pursuant to this paragraph to the United States Treasury. If Defendant fails to make any payments ordered in this Final Judgment, all outstanding payments under this Final Judgment, including post-judgment interest, shall become due and 3 payable immediately. In addition, the Commission may enforce the Court’s judgment for disgorgement and prejudgment interest by moving for civil contempt (or through any other collection procedures authorized by law) for the entire amount of the judgment. In response to any such civil contempt motion by the Commission, Defendant may assert any legally permissible defense. In the event that Defendant fails timely to make any payment ordered in this Final Judgment, the Commission may seek expedited discovery concerning Defendant’s financial condition, and Defendant shall cooperate in any such discovery efforts, including, without limitation, providing sworn financial statements, financial records and other documents to the Commission within five business days of any such request for documents or a financial statement, and making himself available for a deposition with five business days of any request for a deposition for the purpose of discovering assets or assessing his financial condition. III. [INCORPORATION OF CONSENT OF DEFENDANT] IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Consent of Defendant, filed in conjunction with the SEC’s motion for entry of this Final Judgment, are incorporated in this Final Judgment with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein. IV. [RETENTION OF JURISDICTION] IT IS FURTHER ORDERED, ADJUDGED AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 4 V. [RULE 54(b) CERTIFICATION] There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. SO ORDERED: ____________________________________ UNITED STATES DISTRICT JUDGE Dated: _______, 2009 5
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